10000 to 4crs in 18 months 1000rs to 50crs 300% returns 75% promoter holdings A 50 bagger A sureshot 5 bagger Analysis Another fraud? Auto ancillaries Bank sector Blind sell Brand plays Broking Bse Nse Buy calls cements Ceramics/tiles Counters I don't like Debt free businesses Delisting candidates demerger bets Disclosure- I own them Domestic consumption plays E-Commerce pick Education Exit at rallies Famous analysts Famous stocks FMCG Footwear future multibaggers Gems andJewellery Hidden gems High conviction ideas High dividend plays High potential small caps High ROE stocks Holding companies Hotel sector How they looted you.. Indian stock market Infrastructure sector Interesting Microcaps IT KPO Landbank plays largecap ideas Less than 5 PE stocks Liquor Logistics Market lessons Market outlook for 2013 and 2014 Market underperformers Meeting with the CEO Metals Monopoly businesses My 5 baggers My Favourite counters My paid stock recommendations My stock picking techniques nse bse tips Oil exploration Operator calls Paints Penny stock outlook penny stock updates Pharma sector Poultry stocks PSU Publicity freaks Real estate Renewable energy plays Safe bets Sell recommendations Share market Live shipping stocks short term call SOTP plays stock tips stock under 10rs Stocks to watch out for Strong bonus candidates Takeover candidates TATA product tea Textiles The 13 bagger The 45 bagger Trading companies Transformers Turnaround bets Tyres Uncertain/Risky business models Unique businesses

Search This Blog(Over 800 companies covered in the blog).

Archives : Old artciles

Sunday, August 24, 2008

Market outlook and a solid story

Market outlook:-The commencement of a major correction in oil and related commodities will bring much awaited relief to our markets. It should mean sustained relative outperformance for India and asia in a global emerging market context.However the bootom may have not formed yet.Fii"s are prefering India over China in oil softening scenario. They beleive that government should maintain the current interest rate scenario, and would overkill the growth if any rate hike done from the current levels to tame inflation.Inflation figures will continue to haunt people till it moves down there shouldnt be any heigthned activity in the markets.Its certainly a big concern and market wont be having any jolly ride until the same cools down.I remain underwight on Commodities,Cyclicals and interest rate sensitive stocks.Markets seem hesitant to move beyond 15200.Keep buying quality business without going gung-ho-Still there are enough oppurtunities in the market to make a pot of money over the longer run.The trend for the past 2 months has been shaky.Hence, this is not a good time to make exit from the stocks.Long-term investors should continue to own suggested stocks,sooner or later there ineherent strong fundamentals would speak for them.Some banking and real estate stocks fell the most and I continue to remain circumpspect about both the sectors.

Scripscan:Kabra Extrusion Technik Ltd
Traded in:Nse-bse

Story:Kabra EXtrusiontechnik is a Mumbai-based manufacturer of extrusion machinery used in plastic processing. The company is the market leader in India in this type of machinery and has grown steadily over the past five years. Given the rising consumption of plastic in India , the company has healthy growth prospects.The company caters to the capital goods sector by manufacturing plastic extrusion machinery that produces a wide range of plastic pipes. In case of (polyvinyl chloride) PVC polymer, pipe manufacturing accounts for nearly 40% of the total plastic demand in the country. As a result, pipe extrusion machinery is one of the largest segments in the plastic machinery industry. KEL recently started manufacturing machinery to produce plastic films such as multi-layer blown film (MLF), which is used in the packaging industry. The company derives nearly 35% of its revenue from exports and plans to increase that to 50% over the next couple of years.It enjoys a technological edge, thanks to its tie-up with Battenfield Extrusiontechnik, Germany , and Maplan Corporation, USA, which are global leaders in extrusion machinery and together hold 14% equity stake in KEL.The extrusion machinery industry, being linked to plastic consumption, has significant growth potential. The consumption of PVC pipes has been growing in double digits, since such pipes are increasingly used for drinking water and sewage applications, apart from the traditional irrigation and agriculture. Similarly, demand for high density polyethylene (HDPE) pipes is growing in telecom ducting, water supply, irrigation, fuel gas distribution etc.KEL’s net sales have witnessed a cumulative annual growth rate (CAGR) of 20%, while its profit has recorded a CAGR of 25.5%.KEL is debt-free and cash-rich and has paid dividends for the past 10years.KEL’s current market capitalisation is Rs 91 crore. The company has investments in listed equity worth Rs 20 crore and owns mutual fund units worth Rs 9 crore. Both these investments contribute Rs 36 per share to its current market price of Rs 113.Thus, the company’s core business is available at just Rs 77 per share — below its book value of Rs 83 — which translates into a price-earnings (P/E) multiple of 3.8 based on earnings for the past 12 months. In view of the company’s stable growth prospects, low valuations and healthy dividend yield, longterm investors can consider this stock.

I can be reached

No comments:

Important Disclaimer&Privacy policy

This blog does not share personal information with third parties nor do we store any information about your visit to this blog other than to analyze and optimize your content and reading experience through the use of cookies.You can turn off the use of cookies at anytime by changing your specific browser settings.This privacy policy is subject to change without notice and was last updated on 20.3.2013. If you have any questions, feel free to contact me directly here: Investment in equity shares has its own risks.Sincere efforts have been made to present the right investment perspective.The information contained herein is based on analysis and up on sources that I consider reliable. I,however,do not vouch for the accuracy or the completeness thereof.This material is for personal information and am not responsible for any loss incurred based upon it & take no responsibility whatsoever for any financial profits or loss which may arise from the recommendations above.The stock price projections shown are not necessarily indicative of future price performance.The information herein, together with all estimates and forecasts, can change without notice.

Subscription to Arunthestocksguru

Enter your email address:

Delivered by FeedBurner